Mumbai: Five months after Reliance Industries and British energy major BP Plc announced their intent to set up nationwide fuel retail outlets, the companies on Monday signed a partnership agreement to set up 5,500 petrol pumps under the brand Jio-BP.
"BP and RIL signed a definitive agreement relating to the formation of their new Indian fuels and mobility joint venture. This follows the initial heads of agreement signed in August this year," the companies said in a press statement.
The venture is expected to be formed during the first half of 2020, subject to regulatory and other customary approvals.
RIL currently has about 1,400 operating petrol pumps and some 30-odd aviation fuel stations at airports. These will be taken under the fold of the RIL-BP joint venture.
This August, the companies had announced their plan to create a new joint venture company that will be owned 51% by RIL and the remainder by BP. RIL had said BP will pay about ₹7,000 crore for acquiring a 49% stake in its existing petrol pumps and aviation turbine fuel network.
Mint had on 6 December 2016 reported that the two companies may join hands to build a retail network in India.
BP had in 2011 bought 30% stake in 21 oil and gas exploration and production blocks of Reliance for $7.2 billion. In addition, both companies had set up another 50:50 joint venture, India Gas Solutions, for sourcing and marketing gas in India.
BP received a licence to market jet fuel in India in January 2016. In October 2016, it received a licence to set up 3,500 fuel retail outlets in India. RIL holds a licence to open 5,000 fuel outlets and plans to double its market share in the fuel retail segment from the present 2-3% share.